MGT 6203 MIDTERM PART 2– SOLUTION KEY CODING QUESTIONS with ANSWERS

MGT 6203 MIDTERM PART 2– SOLUTION KEY CODING QUESTIONS with ANSWERS Week 1 Use the inbuilt dataset ‘longley’ for questions 1 and 2. Q1) Fit a linear regression model with ‘Employed’ as the response variable and all other variables (except ‘Year’) as predictors. What are the significant predictors at 10% significance level? A. GNP B. GNP, Armed.Forces C. GNP, Unemployed, Population D. None of the predictors are significant at 10% significance level Solution: model1 = lm(Employed~.-Year, data = longley) summary(model1) ## ## Call: ## lm(formula = Employed ~ . - Year, data = longley) ## ## Residuals: ## Min 1Q Median 3Q Max ## -0.55324 -0.36478 0.06106 0.20550 0.93359 ## ## Coefficients: ## Estimate Std. Error t value Pr(|t|) ## (Intercept) 92. 35. 2.629 0.0252 * ## GNP.deflator -0. 0. -0.366 0.7217 ## GNP 0. 0. 2.269 0.0467 * ## Unemployed -0. 0. -0.921 0.3788 ## Armed.Forces -0. 0. -1.975 0.0765 . ## Population -0. 0. -1.222 0.2498 ## --- ## Signif. codes: 0 '***' 0.001 '**' 0.01 '*' 0.05 '.' 0.1 ' ' 1 ## ## Residual standard error: 0.4832 on 10 degrees of freedom ## Multiple R-squared: 0.9874, Adjusted R-squared: 0.9811 ## F-statistic: 156.4 on 5 and 10 DF, p-value: 3.699e-09